November 28, 2012

"On Its Way Out"

Formerly hard-core Marxists around the world have been discovering that radical wealth redistributionism doesn't work, except to create widespread and profound poverty, misery, and destruction. At some point, even the most hardened communists realize the ideology just isn't worth it, that Marx wasn't such an attractive dude, and that---holy Toledo!---people want to be and like being rich.

So, many of these former communists have been turning toward free market capitalism. The Chinese got the ball rolling many years ago, when they started allowing limited economic freedom, first to farmers and the agricultural sector, and then to the broader society. The Chinese economy---while still one under "managed capitalism"---has been booming for years as a result, and it now includes an ever-growing middle class.

The Chinese economy, however, is slowing, like many other economies, so the communist leadership just announced that it is going to cut taxes. Yes, the commies are cutting taxes to spur job creation and economic growth. What a concept.

Not to be outdone by their Chinese brethren, the Cuban communist leadership is taking even more radical steps to get economic growth going. Starting January 1, everyone in Cuba will be taxed according to their income. No more blind subsidies. No more total government control. No more, well, communism.

"The government's free market reforms introduced over the last two years, are designed to encourage small businesses, private farming and individual initiative, along with plans to pay state workers more. Under the new tax code the state hopes to get its share of the proceeds.

"The government also envisions replacing subsidies for all with targeted welfare, meaning that the largely tax-free life under a paternalistic government is on its way out."

Communism: "On its way out." Wow.

This latest change to the Cuban tax code comes after a few years of free market experimentation begun by Raul Castro after he took over for his brother Fidel. The fact that the Castro boys are ditching the dismal failure of communism and replacing it with free market capitalism is nothing short of breathtaking.

And yet, here we are in America, with the Democrat president and Congressional leadership going the other way, doing everything they can to get us looking like China or Cuba circa 1965.

It is extreme economic folly----and an epic historical blunder. But make no mistake: they know EXACTLY what they are doing.